VIX Daily Update: Volatility Subdued by Rallying Stocks

CBOE VIX hangs in the low 10s as stocks resume upward push.

The CBOE VIX (NYSEARCA:VXX) edged lower on Tuesday, as stocks traded near record highs.

The Chicago Board Options Exchange (CBOE) Volatility Index closed down 2.4% to close at 10.08, on a scale of 1-100 where readings below 20 normally show complacency in the market. Wall Street’s preferred fear gauge traded between 9.94 and 10.66 during the session.

The S&P 500 Index (NYSEARCA:SPY) closed up 0.2% on Tuesday.

Major VIX ETFs:

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA:VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second month VIX Futures contracts. VXX declined 2.3%.

ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVXY declined 4.4%.

VelocityShares Daily Short Term VIX Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX declined 4.1%.

The Final Word: Volatility is showing few signs of returning ahead of third-quarter earnings season. Markets appear poised to set new records in the short run as Wall Street’s bull run continues.

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